IAM-Certificate Exam Dumps - The Institute of Asset Management Certificate

When developing anasset management strategy, key elements include:

Consistencywith the organizational context and policy.

Alife cycle approach, covering all asset phases.

Clear understanding ofasset requirementsto meet future demand and performance expectations.

Management needs, while important for operational support, are not a core component of strategic development and are therefore the correct exclusion.

Exact Extract from ISO 55001:2014, Clause 6.2 – Asset Management Objectives and Planning:

“The strategy must consider the asset lifecycle, ensure consistency with organizational objectives, and define asset requirements.”

Leadership and commitmentfrom all tiers of the organization are foundational to the success of any asset management system. ISO 55001 places special emphasis onvisible support from top management, which sets the tone for engagement, resource allocation, and continuous improvement.

Without this leadership, asset management initiatives often fail to embed within the culture or gain strategic relevance.

Exact Extract from ISO 55001:2014, Clause 5.1 – Leadership and Commitment:

“Top management shall demonstrate leadership and commitment with respect to the asset management system by ensuring the integration of asset management requirements into the organization’s business processes.”

Optimizingis a core concept in asset management. It refers to establishing a compromise between performance, cost, and risk—across the asset lifecycle. This balancing act is based on data-informed decision-making and scenario analysis.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.5 – Decision-Making:

“Optimization is the process of determining the best value compromise between conflicting priorities such as cost, risk, and performance.”

‘Line of sight’ is a key concept in IAM, referring to how all actions—regardless of position or role—are visibly and logically aligned to the organization's asset management objectives.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 1.5 – Line of Sight:

“Line of sight is achieved when everyone in the organization understands how their activities contribute to delivering value from assets.”

Strategic asset management planningis the process of translating the organization’s high-level objectives intotangible asset management strategiesand performance targets.

Option Arefers to capability development (partially true but incomplete).

Option Bis correct as per ISO 55001 and IAM guidance.

Option Cis general and non-specific.

Option Dis relevant, but more operational in scope.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 4.3.2 – Strategic Planning:

“Strategic planning links the organization’s objectives to asset management objectives, setting out how the organization intends to manage its assets in alignment with these broader goals.”

Spares strategyshould be based onrisk and cost trade-off. Holding spares is justified when theimpact of unavailability(downtime, penalties, service interruption)exceeds the cost of stockingthe parts.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 3.4.3 – Operate and Maintain:

“Decisions about spare parts should consider the risk of failure, lead time, and cost of downtime in relation to the cost of storage and obsolescence.”

Depreciated valueis a financial accounting figure and is not a strong indicator of whether an asset should be decommissioned. Operational, legal, and environmental factors carry more weight.

Exact Extract from IAM – Asset Management: An Anatomy (v4), Section 3.4.5 – Disposal:

“Factors include residual value, reuse options, legal compliance, and environmental impact. Financial book value is rarely a deciding factor.”

According toPAS 55 and ISO 55001, the hierarchy flows fromhigh-level principles and intent (policy)todetailed tactical execution (plans):

Policy– Organizational intent and principles

Strategy– Long-term approach for achieving objectives

Objectives– Specific performance and capability targets

Plans– Scheduled actions to meet objectives

Exact Extract from PAS 55-1:2008, Section 4.2.1:

“The asset management policy leads into the asset management strategy, from which objectives and corresponding plans are derived.”